Mitsubishi Motors reports loss for Q1

Mitsubishi Motors Corp. said today it plunged into the red last quarter due to a sales slump caused by plummeting global demand and a rising yen.

Mitsubishi Motors Corp. said on Thursday it plunged into the red last quarter due to a sales slump caused by plummeting global demand and a rising yen.

Japan's fourth-ranked carmaker said its group net loss came to 26.4 billion yen ($278 million) in the April-June quarter, a sharp reversal from the net profit of 10.3 billion yen in the same period last year.

Sales totaled 259.1 billion yen ($2.73 billion), down 57.5 per cent from a year earlier.

Mitsubishi blamed the dismal results on sinking car sales amid the global economic slump as well as a stronger yen, which cuts into overseas profits. The company derives some 80 per cent of its revenue abroad.

"Although the worst seems to be over, the operating climate remains severe," the company said in a statement. The company posted an operating loss of 29.6 billion yen ($311 million) during the quarter, despite cost cutting efforts in wide range of operations from marketing to employment.